Influencer marketing has evolved from a niche advertising tactic into an industry powerhouse, generating billions in ad revenue and reshaping how brands connect with consumers. But as the industry matures, brands must shift from simply chasing follower counts to crafting more strategic, ROI-driven influencer campaigns.
In a recent episode of How They Scaled It, Jake Hay, partner at PopShorts, an award-winning influencer marketing agency, shared deep insights on how brands should approach influencer marketing in today’s volatile digital landscape. Here are the key takeaways:
Influencer Marketing is Still an Education Game
While influencer marketing is a staple in most marketing strategies today, it wasn’t always that way. Jake recalled that in the early days, his job wasn’t just selling influencer marketing—it was educating brands on why it mattered.
“When we started, brands didn’t have budgets for this. It wasn’t a line item yet. We were pitching it as a future necessity before it even was one,” Jake said.
Entertainment brands, like NBC and the LA Kings, were among the first adopters because they understood the power of content and storytelling. But for retail and consumer brands, the process was slower, requiring continuous case studies and proof points to build trust.
Scaling an Influencer Marketing Business: The Biggest Challenge is Financing
Beyond educating clients, one of the biggest challenges for influencer agencies is cash flow. Jake explained that PopShorts essentially operates like a bank—paying influencers upfront, while waiting months for brands to pay them back.
“In many ways, we act like a bank. A brand will sign a $500,000 influencer campaign, and we have to pay creators on day one, but we don’t get paid for 30, 60, or even 90 days,” Jake said.
This financial balancing act makes scaling an influencer marketing agency uniquely challenging. Many agencies struggle with cash flow management, and factoring costs can quickly eat into margins.
Micro vs. Macro Influencers: Who Wins?
One of the most common questions in influencer marketing is whether brands should invest in macro influencers (think Kylie Jenner) or micro influencers (smaller creators with engaged niche audiences). Jake’s answer? It depends on your strategy.
- Micro influencers can outperform macro influencers in paid media performance because engagement rates are often higher.
- Macro influencers dominate in influence—their mere endorsement drives purchase intent, regardless of content quality.
- The best campaigns use a hybrid approach, combining macro for credibility and micro for content volume and cost efficiency.
AI & the Future of Influencer Marketing
AI is making a big impact on influencer marketing, but not in the way most people think. While AI-generated influencers are a novelty, Jake sees more immediate value in AI’s ability to enhance audience segmentation, content ideation, and performance optimization.
“What AI can help us do is identify different audience segments, create optimized ad content, and fine-tune paid media strategies. That’s where the real power is,” Jake said.
Paid Media & Influencer Marketing: A Perfect Match
Jake strongly emphasized that brands should allocate at least 10% of their influencer marketing budget to paid media—with a sweet spot around 30%.
“Organic reach is unpredictable. If you’re not using paid media to amplify influencer content, you’re not maximizing your investment,” he said.
This strategy aligns with recent trends: brands are increasingly repurposing influencer content in paid ad campaigns on Meta, TikTok, and other platforms, achieving better cost-per-click and conversion rates than traditional brand ads.
Cross-Platform Strategy: The Key to Longevity
The social media landscape is volatile. Platforms like Vine disappeared, while TikTok went from underdog to dominant force. Jake stressed that brands need a cross-platform strategy to future-proof their influencer efforts.
- Cross-posting: A single video can be used across TikTok, Instagram Reels, and YouTube Shorts.
- Platform-agnostic content: Content should be adaptable as platforms evolve.
- Omnichannel storytelling: Influencer content shouldn’t live and die on social—it should fuel programmatic ads, email marketing, and even TV spots.
Want to hear the full conversation?
Listen to Episode 02 of How They Scaled It on Spotify: https://open.spotify.com/episode/2ylTHaiG18TB4P7CH8voLv
Final Takeaway: “It’s Just a Social Post”
One of the most memorable quotes from Jake was his reminder to not take things too seriously.
“It’s just a social post. If you mess up, it’s not the end of the world. What matters is consistency, learning, and optimizing over time.”
For brands looking to refine their influencer marketing approach, the key is data-driven experimentation, diversified influencer portfolios, and an integrated paid media strategy. Because at the end of the day, influencer marketing isn’t just about content—it’s about driving real business results.
To learn more about PopShorts, visit Popshorts.com.
